a. Lower interest rates may reduce the size of banks. b. Banks are no longer as limited
Question:
b. "Banks are no longer as limited when competing with other financial institutions for funds targeted for the stock market."
c. "If the demand for loans rises substantially interest rates will adjust to ensure that commercial banks can accommodate the demand."
Interpret the above statements made by Wall Street analysts and portfolio managers
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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a Lower interest rates are beneficial because they can increase the spread between the interest ban...View the full answer
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